I.) VAT ID of the customer on the invoice
The new regulation of the Hungarian VAT Act, effective from 1 January 2017, obliges taxpayers to indicate the first 8 digits of HU VAT ID of the customer on their domestic sales invoices as well, if the VAT of the invoice reaches or exceeds HUF 100,000 (approx. EUR 320), and if the taxpayer providing the services/selling the goods is established in Hungary. (Previously this threshold was HUF 1,000,000 (approx. EUR 3,200).) However this is not relevant in case the VAT payer is not established in Hungary, therefore this rule is not relevant for non resident tax payers regarding the outgoing invoices, nevertheless please take this rule into consideration regarding the domestic purchase invoices.
II.) Online data provision about domestic sales invoices
The most important change is that as of 1 July 2017 the data of domestic B2B sales invoices on which VAT reaches or exceeds HUF 100,000 (approx. EUR 320) issued by taxpayer with invoicing software should be reported electronically to the Hungarian Tax Authority. VAT-registered taxpayers (without establishment) will also be obliged to meet the new online data provision requirements (similar to the data export functionality requirement introduced in 2016).
According to our current understanding, the data should be provided to the Hungarian tax authority continuously, on a real-time basis. Please note that the technical solution for providing the data and the exact invoice data which should be provided to the Tax Authority will be defined in separate legislation. However, this has not yet been published. That new legislation is expected in the near future.
Considering that the separate legislation has not yet been issued, the effective date of the change might be postponed.
III.) New threshold of the domestic recapitulative statement
From 1 July 2017, the threshold regarding the domestic recapitulative statement reporting obligation will decrease to HUF 100,000 (approx. EUR 320). (Please note that currently the threshold is HUF 1,000,000, approx EUR 3,200.)
Nevertheless, from 1 July 2017, domestic recapitulative statements need only be filed for purchase invoices received from domestic taxpayers, and invoices issued on a preprinted standard form. At the same time – as noted above -, from 1 July 2017 taxpayers will be required to supply data online for invoices issued using invoicing software, VAT content of which reaches or exceeds HUF 100,000, therefore these invoices should not be included in the domestic recapitulative statement from 1 July.
The above rules regarding the domestic recapitulative statement might change in the near future again.
IV.) Extending the scope of reduced VAT rates
Basically the VAT rates will remain the same (5%, 18% and 27%) in 2017 in Hungary, however, the scope of the reduced VAT was extended from 1 January 2017 (e.g. the VAT rate on eggs, certain poultry meat and fresh milk decreased to 5%, VAT on restaurant services and internet subscription decreased to 18%).
For further details please contact Laszlo Deak, Partner PwC Hungary on +36 146 195 90 or firstname.lastname@example.org.
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